Posted by Mark J. Miller on November 22, 2011 03:03 PM
It used to be that car owners tended to stick with one brand for an extended period of time. You bought Toyota in 1975, you buy Toyota in 1997. You bought Ford in 1982, you buy Ford in 2011.
But times have changed and a new study shows that automotive brand loyalty is on the decline, while consumers simultaneously show a new love for whatever the latest multimedia technology happens to be, according to FOX 59.
“Research firm GfK Automotive's Automotive Intentions and Purchases study, a monthly survey dating back to the early 1980s, found 48 percent of respondents in 2011 plan to buy the same brand of car as they currently own,” FOX reports. “That's down 7 percentage points over the past decade.”
The loyalty factor is lowest in those aged 15-45, according to Doug Scott, a senior vice president at GfK. Scott also pointed out another GfK study that showed that those in Gen Y “placed gadgets ahead of cars among must-have needs,” which is the "first time ever that the car came in second." (What's more, those gadget-obsessed youths are disengaged on the job, too.)Continue reading...
Posted by Dale Buss on August 29, 2011 12:01 PM
It took Korean brands Hyundai and Kia 15 years to attain their current levels of market acceptance among American auto buyers. If the Chinese and Indian auto brands now entering the U.S auto market don't want to wait until 2025 to pick up significant shares, they need to pick up the pace of their product and brand penetration.
According to a new study by GfK, only one-third of American vehicle buyers are willing to consider Indian and Chinese auto manufacturers, compared to 95 percent who are willing to consider U.S. manufacturers. Potential Chinese and Indian brand invaders face considerable skepticism from consumers about quality. Of course, Korean brands were able to overcome a reputation for poor quality, which initially dogged Hyundai when it entered the United States in the late 80's and 90s. The Korean brand addressed this with a trail-blazing 100,000-mile powertrain warranty, and American consumers' perception of Hyundai's quality has climbed steadily in recent years. But it's no sure bet that any auto brand can turn around its quality story if things begin badly: Exhibit No. 1 in this regard is Yugo, which briefly flashed across the American landscape a quarter-century ago. Continue reading...